Tesla Company is one of the most trending companies globally. The company had gained its fame recently, when the demand for its products grew abruptly, and there are more chances of the demand increases with time. Tesla Company is among the first automobile companies to venture into assembling electric vehicles (Handa, 2020). My interest in research on this company is motivated by the fact that the company has provided a solution to cars polluting the environment and realizes how people will respond to emission-free vehicles.
Notably, the company has a little but positive stock. The beta stock for the company is 2.01. However, the company s operating prudent debt management. Again, due to the rising demand for electric vehicles, the company is expected to grow quickly (Perkins & Murmann, 2018). Therefore, putting all factors under consideration, Tesla Company is projected to finance all its projects without sourcing funds from outside. Precisely, the company is operating at a low risk regarding the beta stock. In the year 2020, Tesla set the highest stock price at $2,001.83 per single share. O the other hand, the cheapest stock traded at the lowest stock in the company cost $72.24 per share. However, looking a five- year statistics, the company has attained many shares, and there is a huge possibility for investors’ grabbling for a share in the company in the future.
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The competing companies against Tesla include Ford and General Motors (GM) companies. Ford has accumulated less stock than Tesla. The GM has less stock than the Tesla Company. Additionally, both Ford and GM are still assembling fuel-dependent cars. However, these companies have plans to invest in electric vehicles in the future (Lev, 2017). Conclusively, investing in Tesla would be a better idea than investing in the two competitors. Additionally, the company has a potential growth rate over the others due to increased demand.
References
Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future dynamics in the global automobile sector?. Management and Organization Review , 14 (3), 471-480.
Handa, M. B. Constant Rise of Tesla Inc.: Strategic Marketing Plan Leading To Company’s Colossal Growth in 2020.
Lev, B. (2017). Evaluating sustainable competitive advantage. Journal of Applied Corporate Finance , 29 (2), 70-75.
